Securities Code: 8929

Full-year Business Summaryfor Fiscal Year 2017 (27th period)
January 1 to December 31, 2017

To Our Shareholders

Consolidated Financial Highlights

Aoyama Zaisan Networks Provides
the Most Comprehensive Asset Management Solutions
President Masazumi Hasumi
The social environment is changing significantly, and the need for inheritancestrategies, property management, and business succession has been heightenedeven more. Everyone at our company will put our effort to contribute to thehappiness of our customers while also ensuring sustainable growth in profits andreinforcing shareholder returns. We believe this will further enhance ourcorporate value.
We ask for our shareholders’ continuing support and cooperation.

Operating revenue increased slightly over the previous fiscal year, but the ratio of revenue from property consulting increased
and profits rose significantly.
The needs of individual customers for property management and property succession have grown, leading to a steady rise in thenumber of customers and proposals and engagements to resolve issues. We are also experiencing an increase in the number ofproposals and engagements with corporate customers who have property management needs. The lack of a successor inbusiness succession and business closures are becoming a social problem, and there has been an increase in the range of
proposals and engagements, including capital policy-related cases for succession within the family, succession by employees,and M&A.
Operating revenue

Operating income

14,562 million yen(Up 1.0% year-on-year)

1,094 million yen(Up 45.6% year-on-year(unit: million yen)

17,500(forecast)

14,275

14,420)(unit: million yen)(unit: million yen)

1,210(forecast)

880

1,094768
587
518485
Fiscal Year 2015 Fiscal Year 2016 Fiscal Year 2017 Fiscal Year 2018
(25th period)(26th period)(27th period)(28th period)

Fiscal Year 2015 Fiscal Year 2016 Fiscal Year 2017 Fiscal Year 2018
(25th period)(26th period)(27th period)(28th period)

Fiscal Year 2015 Fiscal Year 2016 Fiscal Year 2017 Fiscal Year 2018
(25th period)(26th period)(27th period)(28th period)

Net profit per share

Operating profit marginROE

66.74 yen

22.2 %

7.5 %(unit: yen)(unit: %)(unit: %)77.10(forecast)

66.74

22.2

7.5
44.21

1768 million yen(Up 30.8% year-on-year

751

property-related issues
Consultingproducts)(forecast)

14,562We are a one-of-a-kind comprehensive property
consulting firm providing services for property andbusiness successions.
Based on our belief that “financial assets are the foundation for leading a happylife,” we provide comprehensive property consulting, including services to support
succession, management and administration of personal properties, businesssuccession consulting for company owners, and solutions for effective use of realestate, which represents alarge share of personal
Personal
Corporateproperties.As anproperty
consulting
independent professional
consultingorganization withspecialized expertise, we
work to resolve ourWe help resolve customer’s
customers’ property issues.

Profit attributable to owners of parent

49.75

19.5

5.2

18.9

3.4
Fiscal Year 2015 Fiscal Year 2016 Fiscal Year 2017 Fiscal Year 2018
(25th period)(26th period)(27th period)(28th period)

Fiscal Year 2015
(25th period)

Fiscal Year 2016
(26th period)

Fiscal Year 2017(27th period)

Fiscal Year 2015
(25th period)

Fiscal Year 2016
(26th period)

Fiscal Year 2017(27th period)

2

Operating Revenue by Segment

The Group has a single segment, namely the Property Consulting
Business.
Fluctuations in operating revenue by segment and forecasts forfiscal 2018 are provided below.

Revenue from property consulting(unit: million yen)

4,440

3,928
million yen(Up 25.8% year-on-year)(forecast)

3,928(unit: million yen)property management and property succession have increased evenmore. We have strengthened our affiliations with financial 12,000
institutions in the Tokyo metropolitan area, and have addressed this (forecast)
10,537
10,147problem by utilizing property consulting
systems.
9,503

9,503

million yen

3,123
2,366

Fiscal Year 2015 Fiscal Year 2016 Fiscal Year 2017 Fiscal Year 2018
(25th period)(26th period)(27th period)(28th period)

As a result of heightened needs for property management, property
succession, and business succession among asset owners andcorporate managers, as well as the development of consulting
products, revenue from property consulting totaled ¥3,928 million(up 25.8% over the previous fiscal year). In fiscal 2018, we expect¥4,440 million in revenue (up 13.0%). As the baby boom
generation reaches the age of 70, needs among asset owners for

However, (Downeven 6.3
as %theyear-on-year)
average age of corporate managers exceeds
60, a majority of companies—numbering more than 600,000—lacka business successor. Every year about 30,000 companies simply
decide to close their business, which has made business succession
Fiscal Year 2015 Fiscal Year 2016 Fiscal Year 2017 Fiscal Year 2018a social problem. We have long focused(25th period)on capital(26th period)policy-related(27th period)(28th period)
cases so that businesses can be taken over by family members andemployees, but we have now established a system enabling us tooffer solutions for a wide range of business succession issues. This
includes business succession consulting utilizing M&A proposals
and funds.
We are also actively putting together consulting products such as
operating leases, which enable stable revenue generation.

Revenue from real estate transactions(unit: million yen)

9,503
million yen

12,000(forecast)

10,537

10,147

9,503(Down 6.3% year-on-year)

Fiscal Year 2015 Fiscal Year 2016 Fiscal Year 2017 Fiscal Year 2018
(25th period)(26th period)(27th period)(28th period)

Since location openings in the ADVANTAGE CLUB, our mainstay
product, were down over the previous year, revenue from real estatetransactions fell 6.3% over the previous fiscal year to ¥9,503
million. We plan to put ¥8,000 million into new locations of thescheme during fiscal 2018, and estimate ¥12,000 million in revenue
from real estate transactions (increase 26.3% over the previous
fiscal year).
Since ADVANTAGE CLUB was launched in 2002, it has developed
into a product with support from many customers. We havereceived far more applications than the number of units offered, sowe sell the product via lottery. We are actively working to form
more locations for this scheme to meet the expectations of ourmany customers.

Revenue from sublease, other revenue

1,130
million yen

3Consulting products

Consulting products and schemes to resolve issues have increased.
ADVANTAGE CLUB

Local revitalization

Based on the Real EstateSpecified Joint Enterprise Act(hereafter, “Joint EnterpriseAct”), we opened three newlocations of the real estatej o i n t ow n e r s h i p s c h e m e ,A DVA N TAG E C L U B , i n
2017. We have opened a totalof 42 locations of the scheme
since it was launched in 2002,
with ¥50.93 billion in assets
under management and a totalof 1,744 participants in thescheme (as of December2017). This program issteadily expanding.

The Company’s first local revitalization project, theconstruction of Komatsu A×Z Square, a mixed-use
facility which is the redevelopment project targetingthe area around Komatsu Station in Ishikawa
Prefecture, was completed in October 2017. We were
the first company in the country to receive
authorization under the Joint Enterprise Act to carryout this project, which used private-sector funds. We
have already received
inquiries from many
local governments andcompanies concerning
this scheme, and going
forward, we will focus
on meeting their needs.

Kanda Yasukuni-doriNagatacho

Shintora-doriOverseas real estate

Operating leases

Business succession fundWe will reinforce our personnel system andstrengthen our services to provide wooden
houses in the US and expand into ASEAN as
well, thus meeting needs for diversified
investments.

We established three operating lease products
for which the target asset is ships (producttankers) in fiscal 2017. We set up a neworganization for stable product mix, and plan toe x p a n drevenue
consistently
g o i n gforward.

Shinsei Aoyama Partners Co., Ltd.,established in 2016, develops
products utilizing funds and has
al read y com pl e te d re turns on
investments for Company’s second
project.

(Image)(Image)Revenue from sublease totaled ¥1,073 million (down 2.5% over the previous fiscal year). We expect revenue totaling¥1,018 million (down 5.2%) in fiscal 2018.
Other revenue amounted to ¥56 million (up 18.5%), and we expect ¥42 million in fiscal 2018 (down 25.7%).

4

Network56 bases within Japan plus a growing global network
We have established a nationwide network inJapan that includes leading tax accounting firms
and accounting offices. Through this network,
we provide consulting services to customers
across Japan. As part of our efforts to expand
internationally, we have established overseas
subsidiaries in the United States and Singapore.
Going forward, we will continue working with
top overseas partners and enhance our network
both at home and abroad.

List of Nationwide Network (as of December 31, 2017)
Hokkaido, Tohoku

Nationwide Network (as of December 31, 2017)
Hokkaido and Tohoku

Chugoku and Shikoku

6 bases

4 bases

Zaisan Consultants Kanazawa Co., Ltd. (Hatake & Starship Tax Corporation)

Aoyama Zaisan Networks Hokkaido Support (IKEWAKI TAX, ACCOUNTING & CONSULTANTS GROUP)

Zaisan Networks Shizuoka Co., Ltd. (Iwasaki Tax Corporation)

Aoyama Zaisan Networks Aomori Support (Konda Accounting Office)Zaisan Networks Nagoya Support (Meinan Consulting Network)

Aoyama Zaisan Networks Sendai Support (MISAWA BUSINESS MANAGEMENT INC.)

Aoyama Zaisan Networks Fukui Support (Uesaka Consulting Firm)

Aoyama Zaisan Networks Yamagata Support (Yutaka Licensed Tax Accountant’s Corp)

Aim Nakano Accounting Co., Ltd.

Nihon Shisan Soken Co., Ltd. Sapporo

Meito Asset Consulting, Co., Ltd.

MISAWA BUSINESS MANAGEMENT INC

Nihon Shisan Soken Co., Ltd. Nagoya

Aoki Accounting Corporation Inc.

MMPC Consultants Corporation
Kimura Business Succession Brain Co., Ltd.

Kanto, Koshinetsu
Nihon Shisan Souken Co., Ltd. (tax accountant office)JapanKinki

56bases(Duplicate bases are excluded.)

Kyushu and Okinawa

10 bases

Tokai and Hokuriku

5 bases

Kanto and Koshinetsu

9 bases
22 bases

Zaisan Networks Kyoto Co., Ltd. (SHINKEIEI SERVICE SHIMIZU Tax Co.)

Zaisan Networks Motegi Co., Ltd. (MOTEGI tax consultant office)Zaisan Networks Osaka Co., Ltd. (Nihonkeiei Will Tax Accountant Corporation)

Aoyama Zaisan Networks Saitama Co., Ltd. (CWM Research Institute)

Zaisan Networks Hyogo Co., Ltd. (Nihonkeiei Will Tax Accountant Corporation)

Zaisan Networks Kawasaki Co., Ltd. (Tokyo Japan Certified Tax Accountants’ Corporation)

Seki Soken Zaisan Partners Co., Ltd (AZ TAX Tax Corporation)

Zaisan Networks Nagano Co., Ltd. (Mochizuki Tax Corporation)

Aoyama Zaisan Networks Wakayama Support (Nishioka Accounting Office)Aoyama Zaisan Networks Ibaraki Support (Masuyama Accounting Office)Aoyama Zaisan Networks Kyoto Nijo Support (HIROSE LICENSED TAX ACCOUNTANT)

Aoyama Zaisan Networks Kanto Chuo Support (MMG Tax Corporation)

Aoyama Zaisan Networks Mie Support (Midland Management Group Mie)

Aoyama Zaisan Networks Denenchofu Support (Saito Tax Corporation)

SMO Corporation

Aoyama Zaisan Networks Yokohama Support (YAMADA SYNTHETIC OFFICE)Shibata Business Consulting Co., Ltd.

Kujirai Tax Corporation

Ueda Certified Public Accountant Licensed Tax Accountant Office.

Aoyama Zaisan Networks USA, Inc.
(United States)
Major Indonesianindustrial conglomerate

Aoyama Wealth Management Pte. Ltd.
(Singapore)

PT. Aoyama Zaisan Networks Indonesia(Indonesia)

Businessline

Individual property consulting, businesssuccession consulting and real estatesolutions consulting

Numberofemployees(Group)184 (as of December 31, 2017)

Consolidated
subsidiaries

6 companies including Aoyama EstateCo., Ltd., Nihon Shisan Soken Co., Ltd.
and Proggest Co., Ltd.

Executives (from March 27, 2018)

Seido Nakatani
Shinji Shimane

Director, Executive Officer

Takaomi Ogawa

Director, Executive Officer

Hideo Matsuda

Outside Director

Haruo Shimada

Outside Director

Keiji Watanabe

Zaisan Networks Fukuoka Co., Ltd. (SHINOHARA CPA OFFICE)

Outside Director

Michihiro Nagasaka

Zaisan Networks Okinawa Co., Ltd. (PS Accounting Office)Outside Auditor

Hiroyuki Fujita

AuditorHisao Nakatsuka

Outside Auditor

Hiroaki Rokugawa

Top Accounting Firm & co

Aoyama Zaisan Networks Shimane Support (Chikashige Tax Office)

Ai Partners Tax Corporation

Nonaka Keiei Corporation

Kyushu, Okinawa

Aoyama Zaisan Networks Nagasaki Support (Chuo Sogo Accounting Office)Aoyama Zaisan Networks Saga Support (MOROI Accounting Firm)

51,088.93 million yen

Director, Executive Officer

Midori Zaisan Consultants Co., Ltd. (Midori Tax Corporation)* NSSTPS is the abbreviation for Nippon Shisan Soken Total
Planning System.

CapitalstockDirector, Executive Officer

Chugoku, Shikoku

eclat Consulting

Aoyama Zaisan Networks’ Nationwide Network
NSSTPS Business Model Association

September 17, 1991

Takeshi Matsuura

Masatoshi Yoshikawa Certified Tax Accountant Office

Overseas partners
Overseas subsidiaries

Incorporated

Masayuki YagiZaisan Consultants Tokushima Co., Ltd. (M.A.S. AGENT GROUP)

Real estate partner

3 F A o y a m a Tow e r P l a c e , 8 - 4 - 1 4
Akasaka, Minato-ku, Tokyo 107-0052
Tel. +81-6439-5800

Director, Managing Executive
Officer

CREAS Corporate Advisers Co., Ltd.

CREAS Corporate Advisers Co., Ltd.

Koyama Sadao tax accounting office

HeadOffice

Masazumi Hasumi

Oyama accounting Co., Ltd

Property
management partner

Aoyama Zaisan Networks Company,
LimitedDirector, Managing Executive
Officer

Nihon Mirai Accounting & Tax Co.

Hong Kong investment
consulting partner

Name ofCompany

President

Zeimu Sogo Tax Corporation
Nakamura Certified Public Tax Accountants Office

Corporate Data (as of December 31, 2017)

Kinki

Zaisan Networks Tochigi Co., Ltd. (Tajima Accounting Office)Kei Yo Research InstituteExpanding
network to Asia
and North
America

Tokai, Hokuriku

Zaisan Networks Fukushima Co., Ltd. (Aoki Accounting Corporation)

IDEA Research Institute Consulting Co., Ltd.

6

Stock Overview (as of December 31, 2017)

Notes for Shareholder

Number of shares in issue

11,963,500…………………………………………

Number of shareholders…………………………………………………………

5,002

Major Shareholders (Top 10)
Name

Shares held

Shareholding ratio

1,216,600

10.66

Yasuo Takano

663,600

5.81

Japan Trustee Services Bank, Ltd. (trust account)

308,100

2.70

Masazumi Hasumi

Fiscal year

January 1 to December 31

Base date for the determination ofshareholders with year-end
dividend entitlements

December 31

Base date for the determination ofshareholders with interim
dividend entitlements

June 30

General meeting of shareholders

in March

Administrator of the shareholder
registry/Account management
institution for special account

Mitsubishi UFJ Trust and Banking CorporationContact

Mitsubishi UFJ Trust and Banking Corporation, Stock Transfer
Agency Department
1-1, Nikko-cho, Fuchu-shi, Tokyo
Tel. 0120-232-711(toll-free, Japan only)
Mailing address: P.O. Box 29, Shin-Tokyo Post Office 137-8081
Mitsubishi UFJ Trust and Banking Corporation, Stock Transfer
Agency Department

MSIP CLIENT SECURITIES

257,700

2.26

Trust & Custody Services Bank, Ltd. (pension trust account)

217,600

1.91

Mutsumi Shimada

200,000

1.75

Stock exchange listings

TSE Second Section

Eiichiro Iwase

165,700

1.45

Public announcements

To be announced on the Company’s website

CHASE MANHATTAN BANK GTS
CLIENTS ACCOUNT ESCROW

162,800

1.43

Nihon M&A Center Inc.

150,000

1.31

SBI SECURITIES Co., Ltd.

117,600

1.03(For reference)
1. ‌Shareholders’ address changes, repurchase requests, and such other procedures, as a rule, are filledwith the account-administrating institutions where shareholders have their accounts (securitiescompanies, etc). Shareholders are requested to contact their account holding securities companies,etc., for information. Shareholders are reminded that application filings cannot be made with theadministrator of shareholder registry (Mitsubishi UFJ Trust and Banking Corporation).
2. ‌Dividends hitherto uncollected by shareholders are paid by Mitsubishi UFJ Trust and Banking
Corporation, Head Office Branch.

D i v i d e n d s

Shareholder Incentives

Our goal is to achieve a stable, ongoing dividend payout
ratio of 50% and increase dividends.

The Company provides benefits under the following
conditions to shareholders recorded in the shareholder
register as of June 30.
Shareholders who hold 1,000 shares or more

Fiscal year ended in December 2017:30 yenTransition of dividend
First half of fiscal year

End of fiscal year
46.2%

40.7%

19.0

13.0

Fiscal Year
2015

8.0
Fiscal Year
2016

<Sample images>

Dividend payout ratio (unit: yen)

45.0%

45.4%(forecast)
21.0 (forecast)

15.0

5.0

Select 1 from 10 products worth 3,000 yen

11.0
Fiscal Year2017

14.0 (forecast)Fiscal Year
2018

Shareholders who hold 10,000 shares or more continuously for over 1 year
A meal certificate from UKAI CO., LTD. (20,000 yen) orUkai special select beef (worth 20,000 yen) <Sample images>